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Analysis of formal-informal transitions in the Ecuadorian labour market

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  • Vega Núñez, Adriana Patricia

Abstract

The study analyses the transitions between the formal and informal labour markets using longitudinal data for Ecuador. First, we use transition matrices to characterize the short-run dynamics among the different labour statuses in Ecuador. Next, multinomial logit models are used to identify the factors that determine the probability of remaining in or moving across the formal and informal sectors. Education level, years of experience and wage differentials by sector have a significant effect on worker transitions, showing that benefits and costs vary depending on the individual’s preferences and skills.

Suggested Citation

  • Vega Núñez, Adriana Patricia, 2017. "Analysis of formal-informal transitions in the Ecuadorian labour market," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    • Handle: RePEc:ecr:col070:43454
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    Cited by:

    1. Gashi Ardiana & Williams Colin C., 2019. "Evaluating the Prevalence and Distribution of Unregistered Employment in Kosovo: Lessons from a 2017 Survey," South East European Journal of Economics and Business, Sciendo, vol. 14(1), pages 7-20, June.

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